Non-resident Indians have many investment options to choose from if they wish to invest in India. ULIP pension plans offer many benefits for NRI investors. To learn more about ULIP benefits and specifically, ULIP tax benefits, for non-resident Indian investors, let’s start by understanding the answer to ‘What is a ULIP policy?’
What is a ULIP policy?
A ULIP policy or a Unit Linked Insurance Plan is an investment option that gives investors the opportunity to enjoy the dual advantage of investment coupled with insurance coverage. The insurer offers the policyholder a life cover, which acts as a safety net for their loved ones. The policyholder pays the insurer premiums on a periodic basis.
Furthermore, the policyholder can also choose to invest in their choice of equity funds, debt funds, etc. These funds can give policyholders market-linked returns, which is another one of the many ULIP Benefits to look forward to.
Can NRIs purchase ULIPs in India?
Yes, Non-resident Indians (NRIs) can undoubtedly invest in ULIPs in India. As per the Foreign Exchange Management Act (FEMA), NRIs are permitted to make investments in India; This also includes investments in Unit Linked Insurance Plans. Consequently, NRIs who wish to purchase ULIPs in India can do so after satisfying all the Know Your Customer (KYC) norms for investing in such life insurance-investment plans.
How can NRIs purchase ULIP pension plans in India?
If you are an NRI who wishes to avail ULIP benefits, you can do so by comparing the different options and selecting a plan that suits your needs. Once you zero in on a plan, you need to fill out the application form and submit the requisite documents.
Generally, these are the proofs that you will need to invest in ULIPs if you are an NRI.
- A scanned copy of your passport, which acts as a proof of your age and identity
- A recent passport-sized photograph
- Proof of residence in India
- Proof of residence overseas
- Proof of income
- Overseas Citizenship of India (OCI) or Persons of Indian Origin (PIO) Card
- A copy of your PAN care or Form 60 if you possess income earned in India
- A Foreign Residency Supplementary Questionnaire for NRIs or PIOs
- Medical examination report as may be required
- Any other document as may be required from KYC and AML perspective
Your insurer will need these documents, as they are required to comply with the applicable Anti-Money Laundering and Know Your Customer (KYC) norms.
NRIs can pay the premiums to the insurer using any of the following accounts:
- Any Indian bank account
- Any NRE or NRO account maintained with an Indian bank
NRIs can also use any of the following methods to pay the premium regularly.
- Domestic or international credit cards
- Internet banking
- Debit cards
- Online wallets like PayTM and Google Pay
- Credit Card Standing Instructions (CCSI)
- National Automated Clearing House (NACH)